The third global manufacturer of soft drinks has published a net increase of 2% to 6.46 billion and a turnover up 15% to $66.5 billion for 2011.
The 2012-year should be a transition year because of the measures it intends to implement to improve its profitability and growth. Therefore PepsiCo intends to reduce its payroll 3% in order to reach 1.5 billion additional cost savings. According to analysts polled by Thomson-Reuters, the average target price is fixed at $70.2 which represents a potential gain of 9.17% on the basis of the current price.
Technically, the plunge on 19 october caused a bearish gap $65/66.50. Indeed, forecasts announcements has naturally created a lot of frustration. In other words, a large parts of the market will take part in any rebound to $66.75 top line and will moreover use them to sell. Besides this support has been successfully tested before.
As a result, investors might a buy order on $64 support area to target $ 66.75. We suggest a stop loss around $63.15.